As Occidental Petroleum works toward closing a $12 billion expansion in the Permian Basin, the E&P is reportedly considering selling midstream interests to reduce debt.
Occidental is exploring a sale of Western Midstream Partners, a pipeline operator with a market valuation of nearly $20 billion, including debt, Reuters reported Feb. 20.
The U.S.-based oil giant plans to shore up its balance sheet after closing a $12 billion acquisition of private Permian producer CrownRock LP by monetizing $6 billion in non-core assets.
Analysts previously said that Occidental could look to sell off parts of its midstream portfolio. The company owns a total effective economic interest of 51% in Western Midstream Partners LP, including all of the 2.3% non-voting general partner interest and 48.8% of the limited partner units in WES, per regulatory filings.
“Examining [Occidental’s] assets, the stake in WES has often been discussed by the market as a potential divestiture candidate,” analysts at Jefferies reported in December when the CrownRock acquisition was announced.
WES shares were trading up over 5% ahead of markets closing on Feb. 20.
Recommended Reading
Mitsubishi Makes Investment in MidOcean Energy LNG
2024-04-02 - MidOcean said Mitsubishi’s investment will help push a competitive long-term LNG growth platform for the company.
BP Restructures, Reduces Executive Team to 10
2024-04-18 - BP said the organizational changes will reduce duplication and reporting line complexity.
Mexico Pacific Appoints New CEO Bairstow
2024-04-15 - Sarah Bairstow joined Mexico Pacific Ltd. in 2019 and is assuming the CEO role following Ivan Van der Walt’s resignation.
Keeping it Simple: Antero Stays on Profitable Course in 1Q
2024-04-26 - Bucking trend, Antero Resources posted a slight increase in natural gas production as other companies curtailed production.
TotalEnergies Eyes Suriname FID by Year-end 2024
2024-04-29 - France’s TotalEnergies and U.S. partner APA Corp. look to place their long lead orders ahead of a final investment decision related to their joint development offshore Suriname in Block 58.